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1 30 July 2012 Companies Announcements Office Australian Stock Exchange Limited Dear Sir/Madam, We enclose the Mining Exploration Entity Report for World Oil Resources Limited (ASX:WLR) for the ended 30 June Highlights: Socrates 1H fracced and completed with production testing underway, Welch Bornholdt Wherry Oil Field, Kansas. WLR holds a 50% NWI in approximately 15,000 acres covering this field. 9% increase in oil production compared to previous at Klick East Oil Field, Oklahoma Source WLR 10 May Socrates 1H Swabbing operations following frac

2 1) Klick East Oil Field Woods County, Oklahoma USA (WLR 49.2% WI) The Company s gross revenue from production was $154,738, which includes oil sales for March, April and May as oil accounts are settled in the month after the month of production. Additional income was received from an insurance settlement and this is reflected in the. Joint venture production for this period was 3,856 Barrels and 17,213 mscf of gas. World Oil Resources Limited has a 40% share of this production after royalties. Oil production volumes were 9.3% higher than the previous and gas production volumes were 24% higher. World Oil Resources Limited and CMX Inc ( CMX ) each own a 49.2% NWI in Klick East which comprises 320 acres. CMX is the operator and Chesapeake Energy owns the remaining 1.6% NWI. 2) Wherry and Welch-Bornholdt Oil Fields Rice and McPherson Counties, Kansas USA (WLR 50% WI) The Socrates 1H well was fracced and completed for production. Oil and reservoir fluid were being recovered at surface. However mechanical issues with the pump have meant that only approximately 10% of the frac fluid has been returned, which is in-sufficient to determine an initial flow rate for the well. World Oil Resources Limited holds a 50% net working interest in approximately 15,000 acres (60.6 square kilometres) covering the field in Rice and McPherson Counties. CMX holds the remaining 50% NWI in the acreage and is operator. 3) Gavea Joint Venture, Sergipe-Alagoas Basin on-shore Brazil Harpia Oil Field (WLR 40%) Guara Oil Field - Previously Block 430, Tatu Discovery (WLR 40%) Brazil s oil industry regulator the ANP reports regularly to the public on the status of production and development licences in the country. The Harpia and Guara oil fields (WLR 40%) continue to be reported, respectively, as production and development licences. 4) Corporate As at 31 June 2012, the Company had $0.975 million cash in bank and no bank debt. Yours Faithfully, Phil Galloway Managing Director In accordance with ASX Rules, the geological information of this release has been reviewed and approved by Mr John Weston, Executive Director of World Oil Resources Ltd, BSc (Hons) and MSc Geology. Mr Weston is a member of the Society of Petroleum Engineers and has more than 30 years of relevant experience within the industry and consents to the information in the form and context in which it appears.

3 Rule 5.3 Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10. Name of entity WORLD OIL RESOURCES LTD ABN Quarter ended ( current ) JUNE 2012 Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration Current (343) (74) (86) Year to date 12 months) (1,938) (220) (500) 1.3 Dividends received 1.4 Interest and other items of a similar nature 9 34 received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) (19) (19) Net Operating Cash Flows Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (313) (1,973) (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) (254) Net investing cash flows (254) 1.13 Total operating and investing cash flows (313) (2,227) (carried forward) 30/9/2001 Page 1

4 1.13 Total operating and investing cash flows (brought forward) (313) (2,227) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 3, Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) (155) Net financing cash flows 3,000 Net increase (decrease) in cash held (313) Cash at beginning of /year to date 1, Exchange rate adjustments to item Cash at end of Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions As at 30 June 2012, the amount held in cash in Mercury do Brasil Oil & Gas Ltda (wholly owned Brazilian subsidiary of World Oil Resources Ltd) bank accounts was BRL $9,246. Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows NIL 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest NIL Page 2 30/9/2001

5 Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used 3.1 Loan facilities 3.2 Credit standby arrangements Estimated cash outflows for next 4.1 Exploration and evaluation 4.2 Development Production Administration 75 Total 240 Reconciliation of cash Reconciliation of cash at the end of the (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current 5.1 Cash on hand and at bank 975 1, Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of (item 1.22) 975 1,288 Previous Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed Tenement reference Nature of interest (note (2)) Interest at beginning of Interest at end of 30/9/2001 Page 3

6 6.2 Interests in mining tenements acquired or increased Page 4 30/9/2001

7 Issued and quoted securities at end of current Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 Preference + securities (description) 7.2 Changes during (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities Total number Number quoted Issue price per security (see note 3) (cents) 390,000, ,000,000 Amount paid up per security (see note 3) (cents) 7.4 Changes during (a) Increases through issues (b) Decreases through returns of capital, buybacks Convertible debt securities (description) 7.6 Changes during (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) 7.8 Issued during 7.9 Exercised during 7.10 Expired during 7.11 Debentures (totals only) 25,153,420 ERHOA 12,000,000 Performance Rights Exercise price $0.20 Expiry date 31 July /9/2001 Page 5

8 7.12 Unsecured notes (totals only) Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. Sign here:... Date: 30 July 2012 (Director) Print name: Philip Galloway Notes 1 The ly report provides a basis for informing the market how the entity s activities have been financed for the past and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == Page 6 30/9/2001